KUALA LUMPUR (June 27): MyEG Services Bhd (KL:MYEG) has announced the activation of its blockchain-based cross-border trade facilitation services after it has secured recognition of certificates from relevant authorities.
This service, known as ZTrade services, operates on MyEG’s blockchain platform, Zetrix. It enables all data in these certificates to be available accurately in near real-time, increasing tariff computation and customs clearance efficiency.
Exporters using the service will benefit from faster and more convenient clearance processing for trades going into China, said MyEG in the bourse filing on Thursday (June 27).
The e-government service provider said it received notification letters on June 27 from East Logistic-Link Co Ltd (EL) on the connectivity deployment with ZTrade services.
These are certificates of origin issued by the Ministry of Investment, Trade and Industry of Malaysia and General Administration of Customs of China (GACC) and a recognition of phytosanitary certificates and other product certificates issued by the Ministry of Agriculture and Food Securities of Malaysia and GACC.
The activation followed the signing of the joint statement of the Ministry of Finance and GACC on single window cooperation in cross border trade on June 19, 2024.
"Accordingly, with the completion of this deployment, live connectivity of the ZTrade services to GACC’s Single Window platform is now enabled," said MyEG.
MyEG's partnership with China Customs’ wholly-owned agency EL began in March last year. The scope of the agreement covers international exports going into China, and MyEG will, via Zetrix, provide the digital service to connect to China's blockchain platform.
Other certificates relevant to cross-border trade like food safety, quarantine, and bill of lading could also be issued on the chain, which in turn increase the efficiency of tariff computation and customs clearance, especially for trade within the Regional Comprehensive Economic Partnership (RCEP).
MyEG posted its highest quarterly net profit of RM155.83 million for the first quarter ended March 31, 2024 (1QFY2024). Quarterly revenue increased 34.5% year-on-year to RM232.96 million from RM173.22 million. It attributed its improved 1QFY2024 financial performance to contributions from its Zetrix blockchain platform and the sale of Zetrix tokens.
No dividends were announced for the quarter.
MyEG shares fell 4.9% or five sen to close at 97 sen on Thursday, valuing the group at RM7.33 billion. Year to date, the stock has gained 18%.
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